ECONOMYNEXT – Sri Lanka may break-up a number entities that are on track for privatization, after transaction advisors complete a study on the entities, Director General of State Enterprises Reform Unit Suresh Shah said.
SriLankan Airlines which has catering, engineering and ground handling operations is one entity where earlier proposals had been made for separately selling the operations.
Whether an entity is divested “bundled or unbundled” in currently open not only for SriLankan but also others listed for re-structure, Shah told a forum organized by CFA Sri Lanka Society.
“This is why we appoint financial or transaction advisors; to help us understand what options are available for us,” Shah said.
“We will look at this from the perspective of the country as well as from the perspective of the company.”
Companies that have multiple subsidiaries include SriLanka Telecom, Litro and Sri Lanka Insurance.
Meanwhile Shah said a transaction structuring report will give the options available and pros and cons of each option.
The final structure will go to cabinet for approval.
The transaction advisors are expected to study firms and build up a data room for prospective investor to conduct due diligence.
The first expression of interest for the Hotel Developers, Canwill Holdings and Lanka Hospitals and are likely to be called in August, with others following about a month or six weeks later.
At least 60 days are expected to be given to buyers to conduct due diligence, he said.
The sales of the smaller entities may be completed by the end of the year or early 2024 and the balance a few months later. (Colombo/July23/2023)